(The Center Square) – A Louisiana refinery will expand to produce more critical minerals for the U.S. as a result of an investment from the federal government.
The Department of War is spending $150 million in its partnership with ATALCO, operator of the nation’s only alumina refinery in Gramercy. The money will be used to double the plant’s output and establish production of gallium, a critical mineral essential in making a variety of high-tech manufactured goods.
The investment is matched with a $300 million commitment by Pinnacle Asset Management, majority owner of ATALCO, whose Gramercy plant supplies approximately 40% of domestic alumina demand.
The $450 million investment is designed to increase alumina output at the plant from 450,000 tons a year to over 1 million metric tons annually and to jumpstart production of gallium, a byproduct of the refining process. Alumina and gallium are used in manufacturing advanced semiconductors, aerospace and defense systems and a variety of energy technologies.
The expansion is expected to create 500 jobs, doubling the factory’s current workforce, a news release from the company said.
“In addition to the core expansion of the ATALCO facility, this investment unlocks significant growth potential, including increasing the site’s mineral processing and power generation capabilities, all of which contributes to the long-term security of America’s materials supply chain,” said Scott Kellman, managing partner at Pinnacle Asset Management.
China produced approximately 99% of the world’s gallium in 2024, according to a report by the Unites States Geological Survey. In the U.S., which imported about 100% of the gallium consumed domestically in 2025, there has been no domestic production since 1987, the report said.
Under terms of the deal, the U.S. government is entitled to a now unspecified share of ATALCO’s earnings or assets. While details of specific profit-sharing percentages have not been shared publicly, any potential financial returns would go to U.S. taxpayers.
The refinery, which began operating in 1959, is currently self-sufficient in power, steam and compressed air production. It maintains an onsite power plant with capacity of more than 50 megawatts that is powered by natural gas and served by three separate pipelines.
The plant is designated as critical national infrastructure because its power and operations are designed to remain active even during major wind or flood events.
